09-Nov-2026 10:36:59
JPMORGAN ON GLOBAL MEMORY SECTOR ; AI FUNDING & POWER BOTTLENECK RISKS
• Memory order visibility continues to improve, with demand commitments extending further into the year. • Market anticipates a potential memory downcycle as early as H1 2027, driven by AI funding risks and power infrastructure bottlenecks. • Investors remain divided between attractive valuations and concerns that memory stocks are cheap for fundamental reasons. • JPMorgan believes EPS downgrades are unlikely over the next six months due to the wide memory supply-demand gap. • Long-term agreements (LTAs) and customer prepayments expected to protect memory earnings against near-term volatility. • KEY MONITORABLES: AI infrastructure funding, data-centre power constraints and the pace of memory supply expansion.
T & I GLOBAL LTD.